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April 25, 2004

Denmark’s TDC considers moving services to India

Danish telecommunications company TDC A/S, which was previously known as Tele Danmark, has claimed that it is looking into the possibility of moving some IT services to India to cut its operating costs in the competitive Nordic telecoms market, Denmark's Borsen newspaper has reported.

By CBR Staff Writer

If [in moving] we can save money and do it just as well and safely, it’s clear that it’s something we will consider, said CEO Henning Dyremose. We are now looking at the possibility, but the results of our study isn’t available now.

Copenhagen-based TDC would not be the first Nordic telecoms sector company to offshore IT to India. In April 2003, TeliaSonera contracted India’s Wipro Ltd to provide it with application management services for integrating a fixed-line network to support its next-generation COTS and OSS systems. Bangalore, India-based Wipro is providing the company with architectural realization, technology roadmap, implementation and systems integration, maintenance and support, and vendor management.

Wipro also provides Stockholm, Sweden-based LM Ericsson Telefon AB with offshore IT development services through a contract signed in September 2002 which involved Wipro acquiring Ericsson’s existing Indian operations. In November 2003, Copenhagen, Denmark based Post Danmark signed a three-year deal with Delhi, India-based Tata Consultancy Services to partly outsource its IT operations in a deal that is likely to result in reducing the number of Post Danmark IT contracts with Danish IT consultancies.

Nordic companies have been slower to take up Indian offshoring than their US or UK based counterparts. However, Nordic IT services companies are increasingly looking to set up nearshore operations in the nearby Baltic and Eastern European states.

For example, Espoo, Finland-based TietoEnator began operating its low-cost development and testing center in Ostrava, Czech Republic in January 2004. The company also sources low-cost development services from Stockholm, Sweden-based rival Mandator, which runs a 100-person facility in Estonia.

This article is based on material originally published by ComputerWire

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